Patent investments?

1/14/2010
Patent course
Tuesday January 12, 2010
The fundation of the patent world
Patent world
Anette Hegner
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12 January 2010
Anette Hegner ©
The fundation of patents
●The historical background
●What is a patent
●The game of patents
●Value-cost
●The patent world - the science world
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Patent law development
1885
1790
1894
1449
1791
1421
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THE PATENT
SYSTEM ADD THE
FUEL OF INTEREST
TO THE FIRE OF
GENIUS Abraham Lincoln 1859
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What is a patent?
A trade between an inventor or her company and the
society
Society
Inventor/inventors
company
Obtains a technical
knowledge which can
add to the progress of
society development.
After 20 years the
technology is free for all
Obtain an exclusive
right for 20 years for
protection of
investment in R & D
INNOVATION
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What does the patent give the owner?
A right to prohibit other from
•Making
•Offer for sale
•Bring on market
•Using
•Importing or
•Possess
•Importing/exporting
a patented product
or a product of a
patented method
•Using
•Offer for use
a patented method
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BUT –is that all – and how does it work?
What is a patent
actually?
Why using ressources
on patents?
For which reasons will
you need a patent?
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A patent is a ’negative right’
A patent is a ’little law’. A Law
that needs basis for interpretation
§
§
The patent attorney
The examiner
The judge
are working with the
‘little law’
-to shape it, and
-to interpret it
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Patents are like articles.
It is good to get your name on a
patent, but it takes lots of time and
may prevent other kind of publication
Inventor
The Inventors
The Technical experts
The Sales/Marketing
Provides technical
input.
Read an understand
some of it.
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Money makes the
world go around!
The CEO/CFO
The Board
The Investors
Wish it to be there
Do not read and
understand it.
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Patent world
§
§
Law
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What does the patent/patent application give the owner?
BUSINESS ADVANTAGIES
• Improved competitive force
• License income
• Sales income
• Income from infringers
• An impression of high quality
A PATENT IS A BUSINESS TOOL
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The game of Patents
Patent investments
Best „return of investment‟
How do you
valuate – what to
compare?
Value for money (which value)
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Value for whom?
Value for inventor
To be mentioned on a patent
Value for universities
Value for start ups
To show prod. of Innovation
Value for firms with exit
strategies
Value for SMEs
Value for production
firms
Value for large
international companies
To get investment
To increase company value
To have something to trade
To obtain market shares
To have dominance
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Patent investments?
Our patents
Competitors Patents
For many companies –
freedom to operate is what matters
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Patent investments?
Freedom of
operation
Area of
dominance
Our patents
Competitors Patents
THE LIMITING FACTOR
COST
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Value of what?
Value of a patent
Depend on scope and strength
The value is proportional with how much
it bothers competitors
Value of a patent
application
As a patent + it is more difficult for
competitors to evaluate
Value of a license
Depend on scope-exclusive/nonexclusive – may open up market
Value of an
opposition/nullity action
May bring FTO – show strength of
company
(Also consider the gun in the drawer)
Value of an FTO
evaluation
Bring knowledge to take proper and
informed decisions/actions - to be
proactive
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The cost of patents?
COST
En patentfamilie
EP(alle), JP, CN, US
Costs/year, Million Ddkr.
2026
2024
2022
2020
2018
2016
2014
2012
2010
2008
2006
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
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The cost of patents?
COST
En patentfamilie
EP(alle), JP, CN, US
Accumulated costs, Million Ddkr.
3.00
2.50
2.00
1.50
1.00
0.50
2026
2024
2022
2020
2018
2016
2014
2012
2010
2008
2006
0.00
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The game of patents?
There must
be a winner!
UNITED STATES
Application
Filed 12 Jan. 2010
“Method of
Making DTU a
Very Large
Amount of
Money”
This way to
the gold!!
We must protect
our research
investment
Equal size! Good –
then we keep the
peace.
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World of Patents – real world
Business assets
Monetary assets
Tangible assets
Intangible assets
GOODWILL
+
+
Enterprise value
Unknown value
Trade value
Stock value
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World of Patents – real world
Patent world
Taking time from
developers
Cost a lot of money
Make a lot of
uncertainties
Difficult to understand
Difficult for CEO to
handle
Can provide large
business advantages
Real world
Making good product
Be on the technological front
Deliver on time
Good design
Good reputation
Good contacts
Good employees
Good business strategy
Good prices
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World of Patents – world of science
How do we behave?
Do we need to have made the invention?
Do we need to understand the invention?
Do we need to prove that it works?
Do we need to test examples?
Do we need to be honest?
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World of Patents – world of science
What about fairness?
Patents are not
about fairness!
In practice it takes 4-15 years
from application to patent (if
granted)
After grant the owner can
terminate an infringing
production
A granted patent need not be
valid – Even simple invention
can lead to patent
Third parties need to proove
invalidity
A patent cost a lot
The more you can afford the
more patent protection you
can buy
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I gave you
all!
Graveyard of worthless patents
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